When forming a Limited Liability Company (SARL), shareholders can contribute equity. In legal language, this is called a cash contribution. Foundation-company-ricard explore the cash contributions that make up the share capital of a SARL.
What is a cash contribution for an LLC?
Un cash contribution is a amount of money paid by its partners, which gives the right to ownership of shares. These fonds are added to capital of the SARL and are represented by a cash account.
Cash contributions (such as contributions in kind or contributions to industry) contribute to social capital formation of the SARL and their nominal value is defined in the company's articles of association.
In its accounts, the company will credit a capital account and debit a cash account.
How to release the capital of an LLC made up of contributions in currency?
The partners of an LLC can adopt various strategies for the discharge of cash contributions that they did. They have the ability to:
- release thetogether of their contributions and therefore immediately disburse all the funds they have pledged;
- Or only releasea fraction of their contributions (at least 1/5), the rest (4/5) must be released within 5 years.
Le partial disbursement capital may have implications important to society. Indeed, when the share capital is not fully repaid at the end of a financial year, the SARL cannot:
- Apply the reduced corporate tax rate (15% within the limit of 38120 euros of profit),
- Deduct the interest resulting from the remuneration of contributions in current accounts granted by its partners.
Should cash contributions be deposited in a blocked account of the SARL?
The partners must provide the capital promised to the SARL before the signing of the final statutes. This sum must be paid on an account opened temporarily in his name within 8 days of receipt (with a notary, a banking establishment, an investment company or at the deposit and consignment fund). Once received, the recipient establishes a certificate communicated to the company in formation and which attest to the sending of a certain sum. This information will be included in the clause of the statutes.
How to unlock financial contributions in an LLC?
The custodian of the funds retains until the SARL is registered in the Trade and Companies Register (RCS). Partners must apply for registration within 6 months of the creation of the company. Otherwise, a partner can go to court to recover his contributions.
Le unlocking contributions in cash is only possible after delivery of the Kbis extract established by the commercial court. The manager of the SARL is responsible for presenting this document in order to obtain the transfer of funds to the final account of the company.
Grant the law of tax benefits to contributors in cash?
Some partners who make cash contributions to limited liability companies can benefit from a tax reduction if they meet certain legal conditions.
- How to write LLC articles of association ?
- What does a legal announcement of the creation of a SARL contain? ?
- What are the formalities to be completed to form an LLC? ?
- How to appoint the manager of an LLC ?
- What does the application file for registration of a SARL contain? ?
- How much does it cost to form an LLC ?
Are there tax incentives for cash contributors?
Partners who have made cash contributions to certain limited liability companies may benefit from a reduction in their tax under certain conditions.
- How to write LLC articles of association ?
- What does a legal announcement of the creation of a SARL contain? ?
- What are the formalities to be completed to form an LLC? ?
- How to appoint the manager of an LLC ?
- What does the application file for registration of a SARL contain? ?
- How much does it cost to form an LLC ?
